MKTG 2030 Chapter Notes - Chapter 4: American Marketing Association, Wedding Anniversary, Price Gouging

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3 Mar 2015
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Ethics and Social Responsibility in Marketing
Evergreen memories: Truly Green Business with a Greater Purpose
-It is a green business that creates and delivers earth-friendly gifts to its customers
-Owner believed that every product came from the Earth and would return to it in one form or another
-She wanted to make people realize the importance of preserving the planet for future
generations
oWanted to focus on new earth-friendly wedding favours
Helps clean our air and fight global warming and prevent soil erosion
oBy the time customers completed their silver wedding anniversaries, their wedding guests will
have nurtured a small forest
oShe added a packaged seed line for special occasions
Nature and Significance of Marketing Ethics
-Ethically and socially responsible behaviour comes with a price tag
-Price of unethical and socially irresponsible behaviour is often much higher
-Ethics: moral principles and values that govern actions and decisions of an individual/group
oServe as guidelines on how to act correctly and justly
Ethical/Legal Framework in Marketing
-Ethics: deals with personal and moral
principles/values
-Laws: society’s values and standards that are
enforceable in the courts
oDeceptive advertising: is both illegal and
unethical (conflicts with moral principles of
honesty and fairness)
oPrice gouging: not illegal but viewed
unethical
Current Perceptions of Ethical Behaviour
-There is public cynicism about the ethical practices of business leaders and their organizations is on
the rise
-Concern over price fixing, bribery, deceptive advertising and unsafe products
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oThere is increase pressure on businesspeople to make decisions in a society
characterized by diverse value system
oGrowing tendency for decisions to be judged publicly by groups with different values and
interests
oPublics expectations regarding ethical behaviour have increased
oEthical business conduct may have declined
Understanding Ethical Marketing Behaviour
Societal Culture and Norms
-Culture serves as socializing force that dictates
what is morally right and just
-Moral standards become relative to particular
societies
-Standards reflect laws and regulations that affect
social and economic behaviour
-In Kora, copying is partially rooted in
society’s culture
oBelieve that the thoughts of one person should benefit all; infringements are barely
prosecuted by Korean government
-Copyright infringement in software and music is very widespread because it can be distributed and
downloaded quickly and globally
Business Culture and Industry Practices
-Business cultures: comprise the effective rules of the games, boundaries between competitive and
unethical behaviour and code of conduct in business dealings
oAffects ethical conduct in exchange relationships and in competitive behaviour among sellers
Ethics of Exchange
-Ethical exchanges results in both buyers and sellers being better off
-Cavet emptor: concept that said “let the buyer beware”; popular before 1960s after which it was
unacceptable due to growth and strength of consumer movement
-Even the most vigilant efforts to ensure safe products cannot foresee every possibility; Toyota recall
oRight to be informed: marketers have an obligation to give consumers complete and accurate
information
oAlso applies to solicitation of personal information over the Internet and subsequent use
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